Facebook Snaps Up 750 Patents from IBM

Facebook has purchased 750 patents from IBM in a move that could help the social media giant fight new patent infringement lawsuits, according to reports.

The patents cover a range of software and networking technologies, Bloomberg first reported on Thursday, citing a person with knowledge of the transaction. Facebook has reportedly confirmed the purchase, but did not disclose how much it paid for the patents. The social media giant may have paid hundreds of millions of dollars for them, Erin- Michael Gill, a managing director at MDB Capital Group, an intellectual property investment bank, told Bloomberg.

The deal bolsters Facebook's relatively small intellectual property portfolio, which as of last year included 56 issued patents and 503 filed patent applications in the U.S. The company also has at least 33 corresponding patents and 149 filed applications in foreign countries.

The patents acquired from IBM deal with technologies related to search and semiconductors, according to a Reuters report citing someone familiar with the matter.

Earlier this month, Yahoo filed suit against Facebook, claiming the social network infringed 10 patents related to its ad network, privacy, customization, messaging, and social networking as a whole. Reuters pointed out that when faced with patent fights, companies commonly threaten countersuit using their own patents. But Sunnyvale, California-based Yahoo has more than 3,300 patents and published patent applications – loads more than Facebook has.

The move may also quell potential investors' fears that Facebook, which is preparing to go public in May, is not equipped with the intellectual property it needs to defend itself against other patent fights. Facebook, which now has 845 million users, filed an initial public offering in February.

The social network said in its filing that it expects to face more patent lawsuits.

"We expect the number of patent and other intellectual property claims against us to grow," the company said in its filing, prior to Yahoo's suit.